• The government has set the loans disbursement target under the PM Mudra Yojana (PMMY) at Rs 3 trillion for 2021-22 (FY22).
• This target is lower than previous year. For FY21, the target was set at Rs 3.21 trillion.

Pradhan Mantri MUDRA Yojana (PMMY) – MUDRA Scheme

• Pradhan Mantri Mudra Yojana (PMMY) is a scheme to extend collateral free loans by Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) to Small/Micro business enterprises and individuals in the non-agricultural sector to enable them to setup or expand their business activities and to generate self employment.
• Maximum limit of loan is Rs 10 lakh.
• Launch Date: April 08, 2015. It was announced in the Annual Budget for FY16.
• MUDRA: Micro Units Development & Refinance Agency Ltd.

MUDRA Bank

• MUDRA Bank is proposed to be set up through enactment of a law which will take some time. So it was started as a subsidiary of Small Industries Development Bank of India (SIDBI). It was launched on 8 April 2015. On 6 January 2016, it was converted as a wholly owned subsidiary of SIDBI and renamed as MUDRA (SIDBI) Bank.
• MUDRA is a refinancing Institution. MUDRA do not lend directly to the micro entrepreneurs / individuals. Mudra loans under Pradhan Mantri Mudra Yojana (PMMY) can be availed of from nearby branch office of a bank, NBFC, MFIs etc.
• MUDRA Portal: Borrowers can also now file online application for MUDRA loans on Mudramitra portal (www.mudramitra.in).
• Chairman of MUDRA: Shri Mohammad Mustafa.
• Outlay: Rs 20,000 Crore (Provided by RBI)